Water utility’s rate request hike on hold

The Public Utility Commission’s five members voted unanimously Thursday to take up to seven months to investigate the company’s rate increase request. The PUC then will turn over its findings to the Office of Administrative Law Judge to settle the matter.

Pennsylvania American asked the state’s permission to boost revenue by about $107.9 million to cover system repairs. The additional revenue would help recoup the $1.26 billion spent statewide in fixing its system over the last four years.

If approved, the hike would raise the bill for a typical residential customer, using 3,630 gallons each month, by about $10.

The utility had asked for the new rates to take effect June 27, but the investigation could put off a change until January.

“This is what we anticipated,” Pennsylvania American spokeswoman Susan Turcmanovich said. “They typically do this to investigate and we provide the information (that they request).”

The utility company last increased rates in 2013.

Pennsylvania American delivers water to 140,000 customers in Lackawanna and Luzerne counties, among the 2.3 million customers statewide who receive water and wastewater services.

Over the last four years, the company improved treatment plants, storage tanks and pumping stations. Other improvements included fire hydrants, wells and 450 miles of new water pipes.

The PUC’s decision follows the state Office of Consumer Advocate filing a formal complaint May 8.

In the complaint, acting consumer advocate Tanya J. McCloskey suggested that Pennsylvania American’s request could be unjust, unreasonable and in violation of the law.

She requested a PUC investigation and hearings to look at whether the utility company’s request is reasonable.

Contact the writer:

joconnell@timesshamrock.com

570-348-9131, @jon_oc

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